Does My Spouse’s Income Affect My Social Security?
Unpack the complex relationship between your spouse's earnings and your Social Security. Understand its nuanced impact on benefits and taxes.
Social Security benefits provide a financial foundation for millions, offering income in retirement, disability, and to survivors. Many wonder how a spouse’s income influences their own Social Security benefits. The impact varies depending on the type of benefit claimed and specific financial circumstances. This article explores how a spouse’s income affects Social Security, covering individual, spousal, and survivor benefits, and taxation.
Impact on Your Own Social Security Benefits
When an individual claims Social Security retirement benefits based on their personal work history, their spouse’s income does not directly impact their primary benefit. Benefits are determined by an individual’s earnings record over their working life. The Social Security Administration (SSA) calculates benefits based on the 35 highest-earning years, adjusted for inflation, to determine an Average Indexed Monthly Earnings (AIME). This AIME calculates the Primary Insurance Amount (PIA), the benefit received at full retirement age.
The PIA formula applies “bend points” to the AIME, using different percentages of earnings at various income levels. If an individual has fewer than 35 years of earnings, zero earnings years are included, which can reduce the overall benefit. The maximum earnings subject to Social Security taxes, counted towards benefits, is set annually; for 2025, this is $176,100.
A spouse’s current income does not reduce or increase the monthly benefit an individual receives based on their own earnings history. However, if an individual continues to work while receiving benefits before their full retirement age, their own earnings can temporarily reduce benefits. For 2025, if under full retirement age for the entire year, $1 in benefits is withheld for every $2 earned above $23,400. In the year one reaches full retirement age, $1 is withheld for every $3 earned above $62,160, counting earnings up to the month before reaching full retirement age. Once full retirement age is reached, there is no earnings limit, and benefits are no longer reduced due to work income.
Impact on Spousal and Survivor Social Security Benefits
A spouse’s work record directly determines eligibility and the amount of spousal and survivor Social Security benefits. These benefits provide financial protection to family members based on a worker’s contributions.
Spousal benefits allow an eligible spouse to receive payments based on the higher-earning spouse’s work record. The maximum spousal benefit is up to 50% of the higher earner’s Primary Insurance Amount (PIA) at their full retirement age (FRA). To qualify, the higher-earning spouse must be receiving retirement or disability benefits, and the claiming spouse must be at least 62 years old. Claiming spousal benefits before one’s own full retirement age permanently reduces the benefit. For example, claiming at age 62 can result in a benefit as low as 32.5% of the higher earner’s PIA. The higher-earning spouse’s current income does not reduce the spousal benefit once benefits begin, unless they are still working and subject to the earnings limit before their own FRA.
Survivor benefits are provided to eligible family members after a worker dies, based on the deceased worker’s earnings record. A surviving spouse can receive up to 100% of the deceased spouse’s benefit if they have reached their own full retirement age for survivor benefits. If the surviving spouse claims benefits between age 60 and their full retirement age, the amount will be reduced. If the surviving spouse is disabled, benefits can begin as early as age 50.
A surviving spouse’s own earned income can affect their survivor benefit if they are below their full retirement age and earn above the annual earnings limit. The same earnings limits apply to survivor benefits as to retirement benefits before full retirement age. For example, if a surviving spouse earns more than $23,400 in 2025 while under full retirement age, their survivor benefits may be reduced by $1 for every $2 earned above that limit. This differs from spousal benefits, where the higher earner’s ongoing income typically does not affect the benefit once claimed.
Taxation of Social Security Benefits
While a spouse’s income does not affect the calculation of an individual’s Social Security benefit amount, it can significantly impact how much of that benefit is subject to federal income tax. The Internal Revenue Service (IRS) uses “combined income” to determine the taxability of Social Security benefits. Combined income is calculated by taking your Adjusted Gross Income (AGI), adding any nontaxable interest, and then adding one-half of your Social Security benefits.
For married couples filing jointly, both spouses’ incomes are combined to determine total combined income, directly impacting the taxability of their Social Security benefits. For married couples filing jointly, if their combined income is between $32,000 and $44,000, up to 50% of their Social Security benefits may be subject to federal income tax. If their combined income exceeds $44,000, up to 85% of their Social Security benefits may become taxable.
For single filers, the thresholds are lower: no tax on benefits if combined income is under $25,000, up to 50% taxable for combined income between $25,000 and $34,000, and up to 85% taxable for combined income over $34,000. These thresholds mean that even if one spouse has a modest Social Security benefit, the other spouse’s income, when combined, can push the total combined income past these limits, making a portion of both their Social Security benefits taxable. Taxpayers can refer to IRS Publication 915 for detailed guidance. Federal income tax can be withheld from Social Security payments by submitting Form W-4V to the Social Security Administration.